On Wednesday, the House of Representatives advanced four tax reform bills submitted by President Bola Tinubu in 2024, approving them for the next legislative stage after scaling second reading.
The bills Nigeria Tax Bill 2024, Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill—were drafted following recommendations from the Taiwo Oyedele-led Committee on Fiscal Policy and Tax Reforms.
With their second reading completed, the bills will now proceed to a public hearing for further scrutiny.
Despite making progress in the House, the bills have faced significant opposition from various quarters, including northern governors and opposition politicians, who have called for their withdrawal, citing concerns over their potential impact.
READ ALSO: Tax Reforms: TUC opposes VAT increase
During plenary, several lawmakers backed the bills, emphasising the need for tax system modernization.
However, Rep. Sada Soli raised concerns that certain provisions might conflict with the 1999 Constitution, particularly regarding derivation principles, which he argued must be explicitly defined to prevent ambiguity.
He expressed confidence that the House Committee reviewing the bills would resolve any inconsistencies before their final passage.
Other legislators also flagged key areas of concern, including the 40 different laws the bills seek to amend.
They particularly highlighted issues of multiple taxation, pointing out that the current provisions require both buyers and sellers of properties to pay tax, a policy that could burden individuals and businesses.
READ ALSO: Tax Reforms: Tinubu calling for anarchy – Gov Mohammed
With the bills now moving to the public hearing stage, lawmakers are expected to engage stakeholders in further consultations before making final amendments.
The outcome of these deliberations will determine whether the proposed tax reforms align with the nation’s economic objectives and constitutional provisions.
